Credit Suisse: Lira May Spike Toward 2.15 Against Dollar By Selcuk Gokoluk Sept. 5 (Bloomberg) -- Bernd Berg, an emerging markets strategist at Credit Suisse in Zurich, comments in e-mailed note. • “Due to lack of central bank credibility to stabilize the falling lira, we believe that short-term pressure on currency may intensify and do not exclude spike toward 2.15 against dollar” • “Central bank is currently highly underestimating the threat of a run on the currency and significant negative implications for the economy via negative feedback loops” • “Turkey remains vulnerable to negative feedback loops on the economy via a run on the currency, quick inflation pass-through, a loss of confidence amongst international investor’s, short-term capital outflows” • “We therefore think that TRY remains highly exposed to a speculative attack on the currency in the short-term should the central bank not restore confidence”
Posted on: Thu, 05 Sep 2013 09:14:18 +0000
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